C & C NORTH AMERICA INC. D/B/A COSENTINO
NATURAL STONE DISTRIBUTORS LLC ET AL.
Session September 18, 2019
from the Chancery Court for Shelby County No. CH-16-1671
JoeDae L. Jenkins, Chancellor
appeals the trial court's order quashing its attachment
and garnishments, whereby Appellant sought payment of its
judgment from interpleaded funds that were owed to Appellee.
R. App. P. 3 Appeal as of Right; Judgment of the Chancery
Court Affirmed and Remanded
D. Krelstein, Germantown, Tennessee, for the appellant,
Natural Stone Distributors, LLC.
D. Berkowitz, R. Spencer Clift, III, and W. Preston Battle,
IV, Memphis, Tennessee, for the appellee, Seven Stone Surface
Armstrong, J., delivered the opinion of the court, in which
J. Steven Stafford, P.J., W.S., and Carma Dennis McGee, J.,
MEMORANDUM OPINION 
the second appeal of this case. In the interests of
consistency and judicial economy, we recite the relevant
factual and procedural history as set out in our first
opinion, C & C North America, Inc. d/b/a Cosentino v.
Natural Stone Distributors, LLC, et al., 571 S.W.3d 254
(Tenn. Ct. App. 2018) ("Cosentino I"):
C&C North America, Inc. d/b/a Cosentino
("Cosentino") is a Delaware corporation that
manufactures stone surfacing products. Seven Stone Surface
Fabrication, LLC, ("Seven Stone" [i.e., Appellee in
the instant appeal]) had its principal place of business in
Georgia but conducted business in Tennessee pursuant to a
"Fabrication Agreement" authorizing it to
fabricate, market, sell, install, and service Cosentino
products. Over time, the parties conducted business in
accordance with the Fabrication Agreement, and Cosentino
incurred 88 invoices reflecting that it owed Seven Stone
$153, 008.34. Before this amount was paid, however, Seven
Stone was administratively dissolved by the secretary of
Cosentino and Seven Stone had also conducted business with
Natural Stone Distributors, LLC ("Distributor[s]"
[i.e., Appellant in the instant appeal]), a Tennessee company
with its principal place of business in Shelby County.
Pursuant to a separate contract, Distributor[s] was
authorized to sell Cosentino products to authorized
fabricators. Seven Stone had submitted a credit application
to Distributor[s] in order to purchase goods on credit and
subsequently made a number of its purchases from
Distributor[s]. When Seven Stone was administratively
dissolved and owed an outstanding balance on its account,
Distributor[s] threatened to file an attachment action
against Cosentino in Texas against the funds Cosentino owed
to Seven Stone.
On October 27, 2016, Cosentino filed a complaint for
interpleader in the chancery court of Shelby County pursuant
to Tennessee Rule of Civil Procedure 22.01 . . .
Cosentino's complaint for interpleader named as
defendants Seven Stone and Distributor. According to the
complaint for interpleader, Cosentino was in possession of
$150, 000 "that both defendants allege is their
property." According to the complaint, Distributor
alleged that Seven Stone owed it $135, 000 plus accumulated
charges. The complaint stated that because of the conflicting
claims, Cosentino was in doubt as to which of the defendants
was entitled to the property and feared that it may be
exposed to double or multiple liability. The complaint stated
that Cosentino took no position on the issue of ownership of
the funds and wished to pay the funds into court so that the
defendants could be required to interplead and settle the
matter between themselves. . .
The following day, before either defendant answered, the
trial court entered an order permitting Cosentino to
interplead the funds, as it "appear[ed] to the court
that [Cosentino] admits liability for the amount of money
forming the subject of this action but is in doubt as to who
is entitled thereto." The order enjoined the other
parties from instituting any other action against Cosentino
with regard to the funds.
Distributor[s] filed an answer and cross-complaint against
Seven Stone. Distributor[s] . . . alleged that Seven Stone
had purchased goods from it on credit and incurred an
outstanding balance of $130, 665.13, plus accrued finance
charges, for a total of $139, 310.06 due as of October 31,
2016. Distributor[s] alleged that this sum remained unpaid